snakess, part of being a good trader is following the trading (price and volume). You follow the market makers on top of the bid and ask to determine if the stock price may go up or down. I also follow the average monthly volume and look for volume for specific market makers. Some market makers are known for dilution. I was mentored by an experienced trader and since then, I've read as much as I can to become a better trader. However, my investments in penny stocks is very limited now. I prefer to invest in mutual funds to lower my risk.